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Analysis of the North American Radiology Image and Information Management Systems Market
Date:7/10/2012

replacing analog film printing and distribution with digital image viewing and communication.

•The first wave of PACS adoption has reached its trailing end, and the market has entered its second generation as PACS technology has diffused top-down from larger-scale to smaller-scale provider market segments.

•With the vast majority of North American radiology providers already using RIS, PACS, or a combination of these two systems, the RIS/PACS market is mature and driven largely by system replacements. Many providers have already replaced one or two PACS and are using or seeking a third-generation solution.

•Unlike with first-generation PACS systems, the ROI model for system replacements is based on incremental workflow efficiency and productivity gains, and on their remote distribution capabilities.

•Radiology PACS have been evolving in recent years into enterprise-wide systems, making them the core platform for multidepartmental integrated image management platforms and for distributed medical image access across multisite environments.

•Radiology PACS have also evolved from first-generation systems to integrate higher levels of functionality, including traditionally stand-alone functions such as RIS and advanced (3D/4D) visualization, as well as traditionally RIS-based functions such as reporting.

•Despite the growing role and scope of PACS, the North American PACS market slowed dramatically starting in 2008, declining in revenue for three consecutive years.

•This recessionary trend was triggered by economic pressures on hospital finances, but was accelerated by the high degree of saturation and lengthening replacement cycles in the large-scale PACS market, combined with pricing pressures and provider consolidation in smaller segments.

•While the three-year revenue decline appears to be a permanent readjustment of the market opportunity, the outlook for the Nor
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